{"id":45428,"date":"2024-04-15T21:57:53","date_gmt":"2024-04-15T21:57:53","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=45428"},"modified":"2024-04-15T21:57:53","modified_gmt":"2024-04-15T21:57:53","slug":"a-company-with-total-assets-amounting-to-rs-1500000-including-goodwill-rs-150000-discount-on-issue-of-shares-rs-200000-and-accumulated-loss-rs-200000-and-the-total-liabilities-amounting","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-company-with-total-assets-amounting-to-rs-1500000-including-goodwill-rs-150000-discount-on-issue-of-shares-rs-200000-and-accumulated-loss-rs-200000-and-the-total-liabilities-amounting\/","title":{"rendered":"A company with total assets amounting to Rs. 15,00,000 (including Goodwill Rs. 1,50,000 discount on issue of shares Rs. 2,00,000 and accumulated loss Rs. 2,00,000) and the total liabilities amounting to Rs. 2,20,000 (including a contingent liability of Rs. 40,000) has been taken over by a new company for a purchase consideration of Rs. 11,50,000. the Goodwill a\/c in the vendee company&#8217;s books will appear at:"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9832bc63941\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    Rs. 90,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Rs. 1,50,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Rs. 4,20,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Rs. 2,40,000                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: A. Rs. 90,000<\/p>\n<p>The purchase consideration is Rs. 11,50,000. The total assets are Rs. 15,00,000, including goodwill of Rs. 1,50,000. The total liabilities are Rs. 2,20,000, including a contingent liability of Rs. 40,000. Therefore, the net assets are Rs. 12,80,000. The goodwill in the vendee company&#8217;s books will appear at Rs. 11,50,000 &#8211; Rs. 12,80,000 = Rs. 90,000.<\/p>\n<p>Here is a brief explanation of each <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> option:<\/p>\n<ul>\n<li>Option A: Rs. 90,000. This is the correct answer. The purchase consideration is Rs. 11,50,000. The total assets are Rs. 15,00,000, including goodwill of Rs. 1,50,000. The total liabilities are Rs. 2,20,000, including a contingent liability of Rs. 40,000. Therefore, the net assets are Rs. 12,80,000. The goodwill in the vendee company&#8217;s books will appear at Rs. 11,50,000 &#8211; Rs. 12,80,000 = Rs. 90,000.<\/li>\n<li>Option B: Rs. 1,50,000. This is the goodwill that existed in the vendor company&#8217;s books. However, the goodwill in the vendee company&#8217;s books will be different, as it will be based on the purchase consideration and the net assets of the vendor company.<\/li>\n<li>Option C: Rs. 4,20,000. This is the difference between the purchase consideration and the total assets of the vendor company. However, this is not the goodwill that will appear in the vendee company&#8217;s books.<\/li>\n<li>Option D: Rs. 2,40,000. This is the difference <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> between the purchase consideration and the net assets of the vendor company, excluding the contingent liability. However, this is not the goodwill that will appear in the vendee company&#8217;s books.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A company with total assets amounting to Rs. 15,00,000 (including Goodwill Rs. 1,50,000 discount on issue of shares Rs. 2,00,000 and accumulated loss Rs. 2,00,000) and the total liabilities amounting to Rs. 2,20,000 (including a contingent liability of Rs. 40,000) has been taken over by a new company for a purchase consideration of Rs. 11,50,000. the Goodwill a\/c in the vendee company&#039;s books will appear at:<\/title>\n<meta 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